Kali Zamkoff BA 301 Homework 1 1.

Kali Zamkoff BA 301 Homework 1 1.

Answer

The three types of financial management decisions are capital budgeting, capital structure, and working capital management. With capital budgeting a business transaction would be deciding to buy a machine and whether or not the cost would be less then the asset. A capital structure business transaction would be if the company wants to buy a machine they cannot pay out of pocket then they would need to borrow from a least expensive source. Working capital management in a business would be a short-term truncation, such as paying off liabilities to suppliers. 2. The four disadvantages of a sole proprietorship and partnership is that 1. they have unlimited liability for debts 2. there are only a limited life of the business 3. ownership is difficult to transfer 4. These all result in a possibility the business cant grow due to inability to have cash for the investment. The benefits for these business…………………………………………………